Ultimately the PMO (Project Management Office) subsection of the BPTO (Business Process‚ Technology and Organization)‚ which Matulovic established as a new internal IT department upon his arrival‚ approves projects prioritized by the IT steering committee (ITSC). Who should control these budgets? Should the IT department have its own budget? 3. How should Matulovic respond to his fellow executives who are calling to ask him for special treatment outside the new priority
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VW Case 1. Define acronyms BPTO‚ DBC‚ ITSC‚ PMO‚ NRG and explain. BPTO – Business Process‚ Technology and Organization. Matulovic created BPTO as firefighters who dealt with challenging projects. Consisting of 23 people‚ Matulovic created the organization to remove the ambiguity of governance and development processes. DBC – Digital Business Council‚ composed of representatives from the eBusiness teams within each business unit. They were responsible for categorizing projects‚ assessing their business
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CASE 1 - Volkswagen of America: Managing IT Priorities Q#1: Given the case‚ provide your assessment of the new process for management of IT priorities. Are some of the criticisms warranted? Is it better than the last old process? Be specific. The new process for managing IT priorities showcased the ambidexterity of the leadership of Volkswagen of America. Considering VWoA’s original outlook on IT as more of an expense than an asset‚ necessary changes were made in order
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the criticisms were coming from the individual sections of the company who didn’t receive their required funding. For instance‚ only $60 M was allocated while $210M was requested by all the business units. With the new process being implement‚ Matulovic was able to bring in business unit managers to work together using the overall company strategy as the driving element. This new process was a massive improvement over the previous process and provides much needed structure-oriented alignment with
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choose the right project efficiently compared to the previous processes. 2. Who controls the budgets from which IT projects are funded at Volkswagen of America? Who should control these budgets? Should the IT department have its own budget? Uwe Matulovic‚ the CIO of VWoA controls the budgets with input from the Executive of Leadership Team (ELT). Before the final approval of the funds for IT
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The process of resource allocation for IT project funding is the primary issue that Dr. Matulovic faces. Inadequate funding from VWoA’s parent company ($60 Million compared to the $210 Million requested) forced a new prioritization system to determine which IT projects receive funding. The prioritization process is a centralized approach that aims to align the organizational activity with corporate goals and strategy. The new system is a significant improvement from the previous unstructured debates
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necessary for the company to advance and continue to move forward‚ I think it would be a good idea if Dr. Matulovic sent these particular investment projects through the same review process as the other projects. This would be a major improvement in the perception of how he is trying to not control the company’s strategy in the eyes of the other business unit manager’s perceptions. Dr. Matulovic should also request more money for the IT budget from global corporate headquarters. Under the current
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Matulovic who is the chief information officer of Volkswagen of America (VWoA) has a tough decision to make. Volkswagen’s subsidiary launched a new process for allocating budgets across the business. With the new process‚ they have derived at a list of approved projects that no one is happy about. Calls came flooding through to Matulovic with an informal request to insert an unfunded project into the IT department’s work plans. VWoA had projects requiring $210 millions and the parent company of VWoA
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Volkswagen of America: Managing IT Priorities Submitted by: Saahil Goel Q. What should Dr. Uwe Matulovic do about the unfunded Supply Flow project? A. There is clearly a problem with the classification of the Supply Flow project and its benefits. The Project Management Office and the Digital Business Council is responsible‚ in conjunction with the Executive Leadership Team‚ for prioritizing IT projects basis their alignment with the company’s strategic goals and the smooth running of the
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1) What is your assessment of the new process for managing priorities at Volkswagen of America? Are the criticisms justified? Is it an improvement over the old process? The new process that was instituted to prioritize IT projects at Volkswagen of America is very well organized. It takes an IT project and looks at it from multiple aspects‚ from business to IT. It also allows for several departmental entities to play a more active role in tying in business objectives with stated benefits of the IT
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